TCA.No.576 of 2017 In High Court of Judicature at Madras Dated : 06.7.2020 Coram : Honourable Mr.Justice T.S.SIVAGNANAM and Honourable Mrs.Justice V.BHAVANI SUBBAROYAN Tax Case Appeal No.576 of 2017 Principal Commissioner of Income Tax-3, Coimbatore ...Appellant Vs M/s.KOB Medical Textiles Pvt. Ltd., Palladam. ...Respondent APPEAL under Section 260A of Income Tax Act, 1961 against order dated 09.3.2017 made in ITA.No.855/Mds/2015 on file of Income Tax Appellate Tribunal, Chennai 'D' Bench for assessment year 2010-11. For Appellant: Mr.T.R.Senthilkumar, SSC & Ms.K.G.Usharani, SC For Respondent: Mr.Ashokpathy Judgment was delivered by T.S.Sivagnanam,J We have heard Mr.T.R.Senthilkumar, learned Senior Standing Counsel and Ms.K.G.Usharani, learned Standing Counsel appearing for appellant Revenue and Mr.Ashokpathy, learned counsel appearing for respondent. 1/4 http://www.judis.nic.in TCA.No.576 of 2017 2. This appeal, filed by Revenue under Section 260A of Income Tax Act, 1961 (for short, Act) is directed against order dated 09.3.2017 made in ITA.No.855/Mds/2015 on file of Income Tax Appellate Tribunal, Chennai 'D' Bench (for brevity, Tribunal) for assessment year 2010-11. 3. appeal has been admitted on 07.12.2017 on following substantial questions of law : i. Whether Appellate Tribunal is right in law in holding that assessee is eligible for claim of deduction under Section 10B of Income Tax Act from assessment year 2001-02 to assessment year 2010-11, when Section 10B provides undertaking begins to manufacture or produce articles or things is eligible to claim deduction and assessee began to manufacture on 27.3.2000 as certified by auditor and hence, deduction under Section 10B is available to assessee from assessment year 2000-01 to assessment year 2009-10 only ? and (ii) Whether Appellate Tribunal is right in granting risk adjustments on ad hoc basis when pre-requisites of Rule 10C(2)(e) are not complied with by assessee and not provided requisite information pertained to claim ? 2/4 http://www.judis.nic.in TCA.No.576 of 2017 4. learned Senior Standing Counsel for appellant submits that above appeal is not pursued by Revenue on account of low tax effect in terms of Circular No.17/2019 dated 08.8.2019 issued by Central Board of Direct Taxes. By said Circular, monetary limit for filing or pursuing appeal before High Court has been increased to Rs.1 Crore. It is further submitted that tax effect in this case is less than threshold limit. 5. In light of said submissions, above tax case appeal is dismissed on account of low tax effect. substantial questions of law framed are left open. In event tax effect is above threshold limit fixed in said circular, liberty is granted to Revenue to make mention to this Court to restore appeal to be heard and decided on merits. No costs. 06.7.2020 To Income Tax Appellate Tribunal, Chennai 'D' Bench. RS 3/4 http://www.judis.nic.in TCA.No.576 of 2017 T.S.SIVAGNANAM,J AND V.BHAVANI SUBBAROYAN,J RS TCA.No.576 of 2017 06.7.2020 4/4 http://www.judis.nic.in Principal Commissioner of Income-tax-3, Coimbatore v. KOB Medical Textiles Pvt. Ltd